Rule of 40 Stocks

Software companies worth $2 billion or more whose revenue growth rate and operating margin add up to at least 40.

Stocks matching the screen

Data as of the October 29, 2026 close
36 stocks match (of 5,323) · showing 1–36
BSPBending Spoons S.p.A.Bending Spoons S.p.A.46.78Software - Application$29.70B161.70
PLTRPalantir Technologies Inc.Palantir Technologies Inc.196.42Software - Infrastructure$472.00B139.90
CORZCore Scientific, Inc.Core Scientific, Inc.14.43Software - Infrastructure$4.64B115.70
CRWVCoreWeave, Inc.CoreWeave, Inc.60.74Software - Infrastructure$33.50B110.60
FICOFair Isaac CorporationFair Isaac Corporation709.18Software - Application$15.30B79.50
BULLWebull CorpWebull Corp5.33Software - Application$2.88B74.20
VRSNVeriSign, Inc.VeriSign, Inc.305.95Software - Infrastructure$27.40B72.60
DLODLocal LimitedDLocal Limited13.65Software - Infrastructure$4.02B71.90
CPAYCorpay, Inc.Corpay, Inc.397.97Software - Infrastructure$26.10B68.40
ORCLOracle CorporationOracle Corporation139.56Software - Infrastructure$423.00B65.20
MSFTMicrosoft CorporationMicrosoft Corporation530.14Software - Infrastructure$3.94T62.80
DAVEDave Inc.Dave Inc.334.80Software - Application$4.27B62.60
FTNTFortinet, Inc.Fortinet, Inc.139.10Software - Infrastructure$102.00B59.20
SNPSSynopsys, Inc.Synopsys, Inc.490.19Software - Infrastructure$95.60B56.90
NTAPNetApp, Inc.NetApp, Inc.218.42Software - Infrastructure$42.90B56.60
YOUClear Secure, Inc.Clear Secure, Inc.46.21Software - Application$4.76B56.50
GRNDGrindr Inc.Grindr Inc.12.90Software - Application$2.24B56.00
PAYPPayPay Corporation American Depository SharesPayPay Corporation American Depository Shares14.53Software - Infrastructure$9.84B54.40
CDNSCadence Design Systems, Inc.Cadence Design Systems, Inc.342.75Software - Application$89.80B52.80
SHOPShopify Inc.Shopify Inc.166.89Software - Application$217.00B51.30
BBBlackBerry LimitedBlackBerry Limited9.19Software - Infrastructure$5.39B48.70
KAROKarooooo Ltd.Karooooo Ltd.66.70Software - Application$2.06B48.70
YMMFull Truck Alliance Co. Ltd.Full Truck Alliance Co. Ltd.8.09Software - Application$8.46B48.40
ADBEAdobe Inc.Adobe Inc.248.12Software - Application$96.60B47.70
ZETAZeta Global Holdings Corp.Zeta Global Holdings Corp.32.74Software - Infrastructure$8.16B47.30
CHYMChime Financial, Inc.Chime Financial, Inc.28.87Software - Application$10.90B45.40
ADSKAutodesk, Inc.Autodesk, Inc.241.73Software - Application$50.50B45.30
QLYSQualys, Inc.Qualys, Inc.230.29Software - Infrastructure$7.97B45.00
DSGXThe Descartes Systems Group Inc.The Descartes Systems Group Inc.92.03Software - Application$7.87B45.00
PAYXPaychex, Inc.Paychex, Inc.109.37Software - Application$38.90B44.40
ADEAAdeia Inc.Adeia Inc.22.48Software - Application$2.47B44.10
GENGen Digital Inc.Gen Digital Inc.28.20Software - Infrastructure$16.90B41.90
FOURShift4 Payments, Inc.Shift4 Payments, Inc.39.25Software - Infrastructure$3.10B41.60
PAYCPaycom Software, Inc.Paycom Software, Inc.260.66Software - Application$11.70B41.50
WEXWEX Inc.WEX Inc.183.47Software - Infrastructure$6.06B41.10
IDCCInterDigital, IncInterDigital, Inc334.27Software - Application$8.63B40.10

End-of-day prices and company fundamentals from EODHD. Fundamentals are refreshed after each earnings report. Ratios that are negative or not meaningful are shown as —. For information only, not investment advice.

Screening criteria

  • Rule of 40 score (quarterly revenue growth plus operating margin) of 40 or more
  • Industry: application or infrastructure software
  • Market cap of $2 billion or more

Common stocks and ADRs on the NYSE, Nasdaq and NYSE American; ETFs, OTC stocks and halted stocks excluded. Change or add filters above to refine the list; the full stock screener has more than 60 filters.

About this screen

The Rule of 40 is a benchmark from software investing: a healthy company's growth rate plus its profit margin should reach at least 40. It lets a fast-growing firm with losses and a slow-growing, highly profitable one be judged on the same scale, because each can trade growth for profit. Here the score is the latest quarterly revenue growth year over year plus the operating margin.

Some investors use free cash flow margin or EBITDA margin instead of operating margin, so scores vary between sources. A high score from extreme growth with deep losses is riskier than one built on both. Check the Growth and Profitability tabs to see which half drives each score, and the Valuation tab for price-to-sales and EV/sales.

Rule of 40 Stocks FAQ

Which software stocks pass the Rule of 40?

As of the October 29, 2026 close, 36 software stocks with a market cap above $2 billion had a Rule of 40 score of 40 or more. The highest scores were at Bending Spoons S.p.A. (BSP), Palantir Technologies Inc. (PLTR) and Core Scientific, Inc. (CORZ).

How is the Rule of 40 calculated?

Add the revenue growth rate and the profit margin, both in percent. A company growing 30% with a 15% operating margin scores 45. This screen uses quarterly revenue growth year over year and the operating margin.

Why is the Rule of 40 used mainly for software?

Software companies can choose to spend heavily on growth or cut spending to show profits, so neither number alone tells the full story. The combined score rewards a sensible balance of the two.

Other stock screens

Sectors & industries

Dividend & income stocks

Value, quality & size

Momentum & technicals

Analysts & earnings